Comparing Avadel Pharmaceuticals (NASDAQ:AVDL) & Innoviva (NASDAQ:INVA)

Avadel Pharmaceuticals (NASDAQ:AVDLGet Rating) and Innoviva (NASDAQ:INVAGet Rating) are both small-cap medical companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, earnings, profitability, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Avadel Pharmaceuticals and Innoviva, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avadel Pharmaceuticals 0 0 3 0 3.00
Innoviva 1 0 0 0 1.00

Avadel Pharmaceuticals presently has a consensus target price of $17.33, suggesting a potential upside of 351.39%. Innoviva has a consensus target price of $13.00, suggesting a potential downside of 20.20%. Given Avadel Pharmaceuticals’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Avadel Pharmaceuticals is more favorable than Innoviva.

Profitability

This table compares Avadel Pharmaceuticals and Innoviva’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avadel Pharmaceuticals N/A -102.83% -35.59%
Innoviva 47.30% 49.31% 26.10%

Valuation & Earnings

This table compares Avadel Pharmaceuticals and Innoviva’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Avadel Pharmaceuticals $22.33 million 10.15 -$77.33 million ($1.54) -2.49
Innoviva $391.87 million 2.89 $265.85 million $2.14 7.61

Innoviva has higher revenue and earnings than Avadel Pharmaceuticals. Avadel Pharmaceuticals is trading at a lower price-to-earnings ratio than Innoviva, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

59.2% of Avadel Pharmaceuticals shares are owned by institutional investors. 2.3% of Avadel Pharmaceuticals shares are owned by company insiders. Comparatively, 0.9% of Innoviva shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Avadel Pharmaceuticals has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Innoviva has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500.

Avadel Pharmaceuticals Company Profile (Get Rating)

Avadel Pharmaceuticals plc operates as a biopharmaceutical company in the United States. Its lead product candidate is FT218, a formulation of sodium oxybate, which is in a Phase 3 clinical trial for the treatment of excessive daytime sleepiness and cataplexy in adults with narcolepsy. The company was formerly known as Flamel Technologies SA and changed its name to Avadel Pharmaceuticals plc in January 2017. Avadel Pharmaceuticals plc was incorporated in 2015 and is headquartered in Dublin, Ireland.

Innoviva Company Profile (Get Rating)

Innoviva, Inc. engages in the development and commercialization of pharmaceuticals in the United States and internationally. Its products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA, and VI; and TRELEGY ELLIPTA, a once-daily combination medicine consisting of an ICS, LAMA, and LABA. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. The company has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.

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